Determine the Estimated Net Realizable (Collectable)value:
Bad Debts Are Estimated

Short Answer

Determine the estimated net realizable (collectable)value:
Bad debts are estimated to be 3% of net credit sales.
$\begin{array}{l}\text { Accounts receivable balance } & \$ 95,000 \\\text { Allowance for bad debts balance (credit) } & \$ 675 \\\text { Net Credit Sales } & \$ 800,000\\\$\end{array}$